Iraq’s digital banks sector is reshaping the nation’s financial landscape as the Central Bank unveils three major initiatives. According to Saleh Mahoud, the Prime Minister’s Advisor for Banking Affairs, these programs aim to expand digital services and strengthen financial inclusion.
In addition, the Central Bank plans to roll out a local electronic card, an instant payment platform, and a unified billing network. Consequently, Iraq continues to enhance its financial infrastructure while integrating modern banking technologies. Experts believe these measures will improve services and fuel long-term economic growth.
Moreover, Mahoud said the Central Bank operates under strict schedules to ensure efficient execution. He added that Iraq works closely with global specialists, especially in financial technology and digital finance. Therefore, this cooperation accelerates modernization and delivers easier access to banking services for individuals and businesses.
Furthermore, the initiatives support Iraq’s wider vision to integrate advanced technologies across various sectors. As a result, Iraq’s digital finance institutions will lay the foundation for future financial innovation and progress.
CBI Governor Ali al-Alaq revealed that the Central Bank has received about 80 applications to establish technology-driven banks in Iraq. Meanwhile, Oliver Wyman, an international consultancy, is reviewing the submissions to assess compliance and eligibility.
Al-Alaq emphasized that next-generation banks represent a significant leap toward technology-based operations. Additionally, these banks will enhance customer experiences, speed up transactions, and increase competitiveness. Consequently, Iraq’s financial institutions are expected to redefine banking services nationwide.
He also highlighted that AI-powered digital banks currently process nearly $5 trillion in transactions each year, with projections to reach $7 trillion by 2027. Innovations in artificial intelligence, encryption, and data analytics drive this expansion, enabling faster and more secure services. Hence, licensing these banks marks a vital step in embedding advanced technologies into Iraq’s financial system.
Finally, officials confirmed that the programs aim to expand financial inclusion and promote innovation within the banking industry. Moreover, Iraq seeks to boost economic stability and attract investment through these initiatives. The Central Bank will continue overseeing progress, enforcing standards, and supporting private partnerships. Iraq’s emerging digital banking network will establish a modern, competitive, and resilient financial ecosystem for the future.
